Govt's welfare review 'dishonest': Labor

The federal opposition has criticised the Abbott government's $1.7 million welfare review as an expensive and dishonest exercise that will hurt society's poorest.

The review of the welfare payments system will cost $1.7 million, largely for salaries, is expected to focus on Newstart and the disability support pension and will conclude on June 30.

Former Mission Australia boss Patrick McClure, who conducted a similar exercise a decade ago under the Howard government, is heading up the review.

He will advise the Department of Social Services on ways to make the welfare system sustainable, effective and encourage people into work.

Opposition families spokeswoman Jenny Macklin said Labor would fight "tooth and nail" against any potential welfare cuts.

The department is not expecting to release a discussion paper as part of the review or seek public submissions.

Ms Macklin said that without public feedback it would not be a serious review into the welfare system.

"It is just outrageous that the government would spend so much money on a dishonest review designed to rip money off some of our community's most vulnerable people," she said in a statement on Monday.